Should economic efficiency be the primary consideration and priority Essay

Should economic efficiency be the primary consideration and priority for the enforcement of competition law - Essay Example This research considers both sides of the debate and emphasises EU competition law and policies. It is concluded that there is no real dominant theme as between economic and non-economic policies and purposes in the enforcement of competition law. This is as it should be, since, the social, political and economic aspects of competition law and policies are equally important to the efficient operation of the market. It is argued that economic efficiency cannot be obtained unless, the political and social objectives of competition laws are achieved. Table of Contents Abstract 2 Introduction 4 The Purpose of Competition Law 5 Non-Economic Purposes and Policies of Competition Law 7 Economic Purposes and Policies of Competition Law 10 Non-Economic Factors as the Main Consideration in the Enforcement of Competition Law 11 Economic Efficiency as the Main Consideration in the Enforcement of Competition Law 15 Conclusion 17 Bibliography 19 Introduction Governments have introduced national com petition laws reflecting a growing trend toward a general consensus that competition laws are primarily aimed at promoting economic efficiency in the market (Lloyd, 1998, p. 1129). Non-economic policies are also reflected in competition laws which are divided between social and political concerns (Baker, 2013, p. 2176). ... 93). Economists tend to favour the economic efficiency of competition law while legal scholars are not comfortable with this view (Kerber, 2009, p. 93). Lianos (2013) presents the two sides of the debate in terms of the economic welfare perspective versus the normative perspective (p. 7). The economic welfare perspective views economic efficiency as the main objective of competition laws. In this regard, economic efficiency refers to enabling consumption choices and the fairer distribution of production permitting freer market entry (Lianos, 2013, 7). The normative perspective refers to the promotion of innovation and democracy in the market for the social and political efficiency of the market (Lianos, 2013, p. 13). This paper analyses both sides of the debate and determines that while economic efficiency appears to be the main consideration and priority for the enforcement of competition law, non-economic factors should have equal consideration. In making this argument, this paper is divided into three parts. The first part of this paper presents the economic and non-economic policies of competition law. The second part of this paper analyses the non-economic arguments and the final part of this paper analyses the economic arguments. The Purpose of Competition Law The purpose of EU competition law can be gleaned from Article 101 of the Treaty on the Functioning of the European Union (Consolidation Edition) 2012 (hereinafter TEFU). Article 101 in general bans any agreement or collusion calculated to distort trade and competition in the market (TEFU, Article 101). A list of the applicable activities include, price fixing, production restrictions or controls, sharing markets or